The watchdog in June set out its final position on tackling APP fraud, which will mean the vast majority of victims will be reimbursed within five days of the fraud being reported to their bank. Before the new requirements come into force next year, the PSR is gathering views on the maximum level of reimbursement and claim excess, as well as on the consumer standard of caution. On the latter, customers will be expected to heed warnings from their bank about likely scam attempts, inform their bank within 13 months of the last fraudulent payment and furnish the bank with information for assessing a reimbursement claim. If it can be demonstrated that the consumer has been "grossly negligent" in not meeting one of more of these requirements, then they may not be reimbursed. "However, gross negligence is a very high bar which will critically depend on the individual circumstances of each case," the PSR states. "The PSR only expects it to apply in a small minority of cases. Gross negligence will never apply where a victim’s vulnerability is a factor in them being defrauded." The PSR is also seeking views on the most appropriate way of structuring a claim excess, which will be applied to the sending bank. This includes whether an excess should be a fixed amount - similar to an insurance claim excess - or a percentage of the reimbursement claim amount. The PSR also proposes that the maximum reimbursement level should be in line with the prevailing Financial Ombudsman Service limit of £415,000 per claim - which around 98% of APP fraud falls within. The regulator is also consulting on whether the maximum level will apply to vulnerable consumers. Chris Hemsley, managing director at the PSR, says: “The changes we are delivering will bring a major shift in preventing fraud, increasing reimbursement for victims, and incentivising the banks to do more to help their customers."Stakeholders have until 12 September to respond to the consultation, with the new reimbursement requirement entering into force in 2024.